Rs one crore fine for demanding capitation under proposed law

Rs one crore fine for demanding capitation under proposed law

The Govt on Wednesday approved amendments to a proposed bill to curb unfair practices in higher technical edu institutes which include raising to Rs one crore the fine for demanding capitation fee and provisions for grievance redressal mechanism.

The amendments to the Prohibition of Unfair Practices in Technical Educational Institutions, Medical Educational Institutions and Universities Bill, 2010 were given the nod by the Union Cabinet along with a change in the title of the Bill.

The Bill, which was introduced in Lok Sabha in March last year, was referred to the Parliament Standing Committee on HRD, which submitted its recommendations in May this year.

Sources said 41 recommendations of the committee were accepted while seven were rejected.

The accepted ones included raising penal provisions for charging capitation fee from Rs 50 lakh to Rs one crore, they said.

The bill would also have provisions for a grievance redressal mechanism and will also have scope for inclusion of any new type of unfair practice other than the specified ones after the passage of the bill.

Giving the bill more teeth, a new clause has been introduced prohibiting unqualified teachers from being engaged. Failure to meet any promise made in the prospectus would also be an offence.

As per Cabinet's decision, the title Technical Educational Institutions, Medical Educational Institutions and Universities Act, 2010 would be substituted by 'Higher Educational Institutions Act, 2011'.

The bill shall cover all higher educational institutions including medical institutes but not agriculture education and research as they are mostly state subjects, the sources said.
The bill comes in the wake of increased public concern about charging of capitation fee and donations by higher education institutions including medical colleges.

"Several students would stand to benefit by enactment of the legislation to curb unfair practices in admission and other areas of higher educational institutions, who are exposed to the prevalence of distortions in the admission process leading to harassment and extortion of students for admission," said a government release.

The unfair practices include demanding or paying capitation fee, admitting students without specified merit criteria, not issuing receipt for any fee charged by the institution, publishing advertisement misleading students, and withholding degree to compel a student to pay a fee.Media agencies